Question
41. Which of the following serves as the lower limit of the feds fund rate? Select one: a. The rate of interest on excess reserves
41.
Which of the following serves as the lower limit of the feds fund rate?
Select one:
a. The rate of interest on excess reserves
b. The required reserve ratio
c. The rate on overnight reverse repurchase agreements
d. The rate on U.S. Treasury bills
42.
Which of the following statements was true concerning the U.S. housing market on the eve of the 2008-09 U.S. financial crisis?
Select one:
a. The supply of existing homes in the U.S. reached a nearly 11 month "overhang"
b. Home prices increased significantly beyond historic norms
c. Subprime mortgage lending spiked upward
d. Each of these answers is correct
43.
Which of the following non-routine measures did the Fed use to address critical needs resulting from the U.S. financial crisis?
I. Creating numerous funding facilities to backstop various financial sectors
II. "Operation Twist"
III. Engaging in quantitative easing to stimulate the U.S. economy
Select one:
a. I only
b. I and II only
c. I and III only
d. I, II, and III
44.
Which of the following U.S. government stabilization programs was run exclusively by the Federal Reserve? I. Term Asset-Backed Securities Loan Facility (TALF) II. Term Auction Facility (TAF) III. Public-Private Investment Partnership (P-PIP)
Select one:
A. I only
B. I and II only
C. I and III only
D. I, II, and III
45.
Which of the following can be considered as a cause of the U.S. financial crisis?
I. The enormous growth in non-conforming home mortgage loans
II. The use of complex credit derivatives backed by home mortgages
III. Inadequate regulation and oversight, particularly of the "shadow banking" system
Select one:
a. I only
b. I and II only
c. I and III only
d. I, II, and III
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